We get it. Running and growing a business can be really hard. But letting your books go by the wayside can be detrimental to your business. If you find yourself in this position, you do not want to let this problem fester. The longer you put it off, the worse it will get. Talk with a financial expert to get you caught up and set up with an accounting system that will allow you to see the true results of your hard work, however that may look for you.
So many entrepreneurs have amazing ideas that could change the world; don’t give up on those ideas just because you haven’t set up good financial operations. If you find yourself adrift – not knowing how your company is doing, wondering how to get your bookkeeping under control, overwhelmed by your accounting – please get help from a financial expert.
If you find yourself at this point:
When operating a business, it is essential to keep personal and business funds separated. It gives you financial clarity in both your personal life and business. Do not use your personal credit/debit card for your business and do not use your business credit/debit card for personal use. Get separate cards and bank accounts for business use and personal use in order to keep your transactions completely separated. It is very difficult and time consuming to separate those transactions once they have been mixed together. To save you the time and money it takes to do that, just keep those separated from the start.
When you first open up your business, you should generally be creating an LLC and getting an EIN for your business. From there you are going to open up a bank account for your business in its name. This will be the account from which, most if not all, of your business transactions take place.
Things get very messy when you start using your personal card for all of your business expenses. If you want to put your own money into your business account to pay for things, you need to make sure you have a paper trail of transferring the money from the personal account to the business account. Do not use your personal account to pay vendors, bills, etc.
If you need help with your financials or don’t know where to start, CPA On Fire can help. Reach out and we will show you how we can transform your business.